3PL revenues to hit USD 1.1 trillion by 2022

3PL revenues to hit USD 1.1 trillion by 2022

E-commerce and continued outsourcing is fuelling global third-party logistics market growth, driving 3pl revenues to over $1.1 trillion by 2022.

Armstrong & Associates has developed global logistics cost and third-party logistics (3PL) revenue estimates with projections through fiscal year 2022. The global 3PL market estimates cover seven major regions comprising 190 countries.

In 2016, the global third-party logistics market reached $802 billion and is on track to exceed $1.1 trillion in 2022. Global logistics costs were $8.2 trillion in 2016 and should surpass $11.1 trillion in 2022. Overall, the Asia Pacific region is the largest logistics market, accounting for 39% of total global logistics costs and 38% of total global 3PL revenues.

Globally, modern industrially developed and post-industrial countries have the lowest relative logistics costs as a percent of GDP. For example, in 2016, North America’s logistics cost as a percent of GDP was 8.6% and Europe’s was 9.5%. Asia Pacific’s estimate was 12.7% and South America’s was 12.0%. This is a function of logistics (road/rail/port) infrastructure, the lifecycle deployment of leading logistics practices, and influence of ongoing process improvements including eliminating unnecessary governmental, bureaucratic obstacles.

For a single country, Greater China’s logistics cost (including Hong Kong, Taiwan, and Macao) is the highest in the world at $1.7 trillion and equivalent to more than half of the Asia Pacific region’s logistics cost. (In comparison, US logistics cost is $1.5 trillion.)

In addition to global 3PL revenue and logistics spending estimates covering years 2010-2022, A&A’s Global and Regional Infrastructure, Logistics Costs, and Third-Party Logistics Market Trends and Analysis also covers infrastructure’s role with a focus on Brazil, India and China; Fortune 500 Global 3PL revenues and growth by industry; e-commerce logistics costs, 3PL revenues and growth rates; 3PL market segment revenues by country and region; and logistics spending by country and region and by mode and function. Global ‘Top 3PL’ lists are also included.

The complete report, complimentary for a limited time, and other A&A market research can be found here.

MREC HERE

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